Utility of income as a random function: Behavioral characterization and empirical evidence

@article{Dagsvik2006UtilityOI,
  title={Utility of income as a random function: Behavioral characterization and empirical evidence},
  author={John K. Dagsvik and Steinar Str\om and Zhiyang Jia},
  journal={Mathematical Social Sciences},
  year={2006},
  volume={51},
  pages={23-57}
}
The paper proposes a particular approach to model the utility of income. We develop a theoretical framework that restricts the class of admissible functional forms and distributions of the random components of the model. The theoretical approach is based on theories of probabilistic choice and ideas that are used in modern psychophysical research. From our… CONTINUE READING